A 250 kW / 1 MWh AirBattery system built by Augwind
Image: Augwind
From pv magazine ESS news place
Interest in long-term energy storage (LDES) is growing rapidly as demand for clean, firm capacity grows. Because most LDES technologies are still in their infancy, information about their costs is not yet widely available. In its first LDES cost survey, BloombergNEF brings transparency to the matter.
In its report, BNEF examined seven LDES technology groups and 20 technology types and found that the least expensive technologies already provide cheaper storage than lithium-ion batteries for a duration of more than eight hours.
Thermal energy storage and storage of compressed air had an average capital expenditure, or capex, of $232/kWh and $293/kWh, respectively. By comparison, lithium-ion systems had an average capital investment of $304/kWh in 2023 for four-hour systems, so generally shorter-term storage.
Storage duration, project size and location are key factors influencing LDES investments. Gravity energy storage systemsthat increase weight during charging and decrease it in a controlled manner during discharging have the highest average capex, at $643/kWh.
The cost reduction rate of LDES technologies will largely depend on the expansion of deployment and development of routes to market in major regions, BNEF notes.
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